EXHIBIT 99.1
FOR IMMEDIATE RELEASE (THURSDAY, JUNE 15 , 2000)
Contact: Stephen L. Johnson John A. Rice, Jr.
Public Relations Investor Relations
(415) 765-3252 (415) 765-2998
UNIONBANCAL CORPORATION REVISES OPERATING EARNINGS ESTIMATE FOR SECOND QUARTER
2000
SAN FRANCISCO -- UnionBanCal Corporation (NYSE: UB) today announced that it
expects to report operating earnings of $0.77 to $0.82 per diluted share for
second quarter 2000, which includes a projected provision for credit losses of
approximately $70 million.
In the year earlier quarter, operating earnings per share were $0.69 per diluted
share, including a provision for credit losses of $10 million. In first quarter
2000, the Company recorded a provision for credit losses of $40 million.
"We are disappointed to report a lowering of our profit expectations for the
current quarter," said Takahiro Moriguchi, President and Chief Executive
Officer. "We have seen a decline in asset quality and have taken appropriate
action. At the same time, our core earnings power remains strong and should
enable us to report a double digit increase in second quarter operating earnings
per share, despite the higher provision."
Nonperforming loans at June 30, 2000 are currently estimated to total $200
million, compared with $144 million at March 31, 2000 and $167 million at
December 31, 1999. Nonperforming loans as a percent of total loans are projected
to be approximately 0.75 percent at June 30, 2000, compared with 0.56 percent at
March 31, 2000.
Net charge-offs for the second quarter are currently estimated to be $52
million, compared with $27 million in first quarter 2000. Net charge-offs
(annualized) as a percent of average loans outstanding are currently estimated
to be 0.79 percent for second quarter 2000, up from 0.42 percent for first
quarter 2000.
At June 30, 2000, the allowance for credit losses as a percent of total loans
and as a percent of nonaccrual loans is currently estimated to be 1.85 percent
and 250.0 percent, respectively. These ratios compare with 1.86 percent and
334.6 percent, respectively, at March 31, 2000.
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Based in San Francisco, UnionBanCal Corporation is a bank holding company with
assets of $33.6 billion at March 31, 2000. Its primary subsidiary is Union Bank
of California, N.A., the third largest commercial bank in California, and among
the 30 largest banks in the United States. Union Bank of California, N.A. has
240 banking offices in California, 6 banking offices in Oregon and Washington
and 18 international facilities.
Management will conduct a conference call to review announcements made in this
press release at 6:00 am PDT (9:00 am EDT) on June 16, 2000. Interested parties
calling from locations within the United States should call 1-800-205-6183 ten
minutes prior to the beginning of the conference. From locations outside the
United States, interested parties should call 1-415-908-4701.
A recorded playback of the entire call, including questions and answers, will be
available by calling 1-800-633-8284, (1-858-812-6440 for those outside the
United States) between 8:00 am PDT, June 16, 2000, and 5:00 pm PDT, June 19,
2000. The reservation number for this playback is 15540257.
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The following appears in accordance with the Private Securities Litigation
Reform Act:
This press release includes forward-looking statements that involve inherent
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those in the forward-looking statements. Those
factors include fluctuations in interest rates, government regulations, and
economic conditions and competition in the geographic and business areas in
which the Corporation conducts its operations. For additional information
regarding UnionBanCal Corporation, including a discussion of related risk
factors, please refer to the Corporation's public filings with the Securities
and Exchange Commission which are available by calling (415) 765-2969 or online
at http://www.sec.gov.
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